Orora’s Revenue Hits $1.13bn with 11% Cans Volume Growth in 1H26
Orora Limited reported a robust 32.2% rise in underlying net profit after tax for the half-year ended December 2025, underpinned by strong volume growth in its Cans segment and operational efficiencies across its glass businesses. The company also completed a $227.4 million share buyback in 2025 and announced a fresh $270 million on-market buyback program.
- Underlying NPAT up 32.2% to $77.8 million
- Revenue growth of 9.7% to $1.13 billion driven by Cans segment
- Completed $227.4 million share buyback in 2025; new $270 million buyback announced
- Rocklea cans line expansion on track for commissioning in first half of 2027
- Saverglass restructuring underway with expected annual EBIT savings from late FY26
Strong Financial Performance Amid Strategic Growth
Orora Limited has reported a significant uplift in its financial results for the six months ended 31 December 2025, with underlying net profit after tax (NPAT) rising 32.2% to $77.8 million. This performance was driven primarily by robust volume growth in the Cans business and operational improvements in its glass segments, Saverglass and Gawler.
The company’s revenue increased by 9.7% to $1.13 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) grew 14.4% to $218.2 million. Operating cash flow surged 50.9% to $189.7 million, reflecting strong cash realisation and disciplined working capital management.
Cans Segment Expansion and Capacity Investments
The Cans segment was a standout contributor, with volume growth of 11.2% supported by ongoing substrate shifts and new category growth. Orora’s investments in capacity expansion, particularly at the Rocklea site in Queensland, are progressing well. The new 375ml cans line is on track for commissioning in the first half of 2027, with approximately $97 million spent to date and $40 million expected to be invested in the second half of 2026.
Post-Rocklea, the network is expected to support around 5% annual volume growth until 2030 without further capacity expansion, positioning Orora well for sustained organic growth. The company’s disciplined capital allocation approach targets returns exceeding 15% by the third year of operations for growth projects.
Saverglass Restructuring and Operational Efficiencies
While Saverglass experienced a slight revenue decline of 2.6% to €298 million, it managed to increase EBITDA marginally by 0.9% to €69.1 million through cost containment measures. The business is undergoing a restructuring program, incurring one-off costs of approximately €10.6 million after tax, expected to deliver annual EBIT savings of €6 million from late FY26.
The closure of the Le Havre F4 furnace is nearing completion, contributing to operational efficiencies. The new management team at Saverglass is focused on executing key priorities to navigate the challenging global spirits and wine markets, particularly in premium segments.
Strong Balance Sheet and Shareholder Returns
Orora’s balance sheet remains robust with a leverage ratio of 0.9x, well below its target range of 1.5x to 2.5x, supported by cash and undrawn facilities totaling $1.23 billion. The company completed a $227.4 million on-market share buyback in calendar 2025, repurchasing 109.7 million shares at an average price of $2.07. Following this, Orora announced a new buyback program of up to 10% of issued shares, approximately 123 million shares valued at around $270 million.
In addition, Orora declared an interim dividend of 5.0 cents per share, unfranked, representing a payout ratio of 79% of NPAT, consistent with its target range of 60–80%. The dividend reinvestment plan will operate for this payment, with shares purchased on market to meet obligations.
Sustainability and Safety Progress
Orora continues to advance its sustainability agenda, aiming for net zero emissions by 2050 and increasing recycled content in its products. The Cans business achieved 78% recycled content in FY25, nearing its 80% target for FY30, while the Glass segment is progressing towards a 68% recycled content target by FY35.
Safety remains a priority, with no serious injuries or fatalities recorded in the period. The company is implementing a global health and safety strategy focused on high-risk activities and embedding consistent safety management practices across operations.
Outlook and Strategic Focus
Looking ahead, Orora expects continued EBITDA and cash flow growth across all businesses in FY26, supported by volume growth and cost reduction initiatives. The company anticipates higher depreciation and amortisation will temper EBIT growth, but operational benefits from capacity expansions and efficiency gains should underpin improved earnings.
Orora’s disciplined approach to capital allocation, strong balance sheet, and focus on organic growth without further capacity expansion until after 2030 position it well to deliver shareholder value in a competitive packaging market.
Bottom Line?
Orora’s disciplined execution and strategic investments set the stage for sustained growth, but investors will watch closely as new capacity comes online and restructuring costs settle.
Questions in the middle?
- How will the new Rocklea cans line impact Orora’s market share and margins post-commissioning?
- What are the risks and potential impacts of US tariff changes on Orora’s global glass operations?
- How effectively will Saverglass’s restructuring translate into long-term profitability improvements?
